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While it's true that Harry Potter merchandise does turn young readers' heads, it doesn't mean that they are dependent upon it for their interest in reading. However, in order to compete, other publishers and bookstores must at least attempt to match the value-added aspect of Harry Potter novels.
It is hard for other children's books to compete with the sheer magnitude of brand spin-offs of Harry Potter. Rowling's high-end tie-ins, from Harry Potter movies to video games and even Harry's own iPod, make stand-alone children's novels look like cheap pulp fiction.
Effect of Merchandise on Consumers and the Industry
The tacticians behind the marketing of Harry Potter books, movies and games use the release date of each new product to fuel the sales of the previous books/movies and upcoming ones. The result of this snowball effect is the consumer feeding frenzy at each successive event-pre-orders in the millions, midnight bookstore sales, and endless lines of costumed moviegoers.
The sales figures don't lie as JK Rowling's Harry Potter series has sold:
Is the allure of reading enough to sell books anymore? We may never know, as the Harry Potter series has come to an end, and there's no turning back now for the rest of the industry and marketing will only become more cutthroat in the current economy.
Readers are the only ones who can truly answer the question, and now, according to some literary critics, their tastes are suspect. Now that the series has ended with Harry Potter and the Deathly Hallows, purist fans of the books will have to convince the naysayers-by reading new J. K. Rowling bestsellers.

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